Im Tax Overview

---
name: im-tax-overview
description: "Overview of the Isle of Man tax system for 2026/27 (6 April 2026 to 5 April 2027): the authorities (Income Tax Division; Customs and Immigration), the tax year and currency, residence, the GBP 17,000 personal allowance, the 10% and 21% rates and the 21% non-resident rate, the GBP 220,000 tax cap, the 0%, 10% and 20% company rates and the 15% Domestic Top-up Tax, National Insurance rates, VAT at 20% with the GBP 90,000 threshold and the Island's own 5% rates, no capital gains tax or inheritance tax, and the main return and payment dates. Trigger phrases: Isle of Man tax overview, how does tax work in the Isle of Man, Manx tax rates 2026, IOM 0% company tax, Isle of Man tax cap. For detail use the domain skills: im-income-tax, im-non-resident-income-tax, im-corporate-income-tax, im-payroll-social, isle-of-man-vat, im-related-party-uk-treaty, im-company-formation."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/im-tax-overview"
  jurisdiction: "IM"
  tax_year: "2026"
  last_updated: "2026-10-30"
---

# Isle of Man Tax Overview

## The Isle of Man tax system at a glance

The Isle of Man is a self-governing Crown Dependency with its own direct taxes, set by Acts of Tynwald. Income tax and National Insurance are run by the Income Tax Division of the Treasury. VAT, customs and excise are run by the Customs and Immigration Division of the Treasury (its pages still use the Customs and Excise name in places). Under the Customs and Excise Agreement with the United Kingdom the Island is treated as part of the UK for customs, excise and VAT. Its direct tax rates are lower than the UK's. The figures below are for 2026/27; the linked domain skills carry the detail and win if anything here differs.

- **Tax year:** 6 April to 5 April. 2026/27 runs from 6 April 2026 to 5 April 2027. Companies are assessed on their accounting period _([im-income-tax](im-income-tax.md); [im-corporate-income-tax](im-corporate-income-tax.md))_
- **Currency:** Manx pound, equal in value to the UK pound; amounts in the skills are in GBP _(gov.im, Manx currency page)_
- **Tax authority (direct tax):** Income Tax Division of the Treasury (the Assessor of Income Tax), Douglas _(PN 227/26; Income Tax Division pages)_
- **Indirect tax authority (VAT, customs):** Customs and Immigration Division of the Treasury _(gov.im VAT page)_
- **Personal residence basis:** Residents are taxed on worldwide income. Non-residents are taxed on Manx income only, at 21% with no personal allowance _(ITA 1970 ss.1(2), 1(3), 2(1); [im-income-tax](im-income-tax.md); [im-non-resident-income-tax](im-non-resident-income-tax.md))_
- **Personal allowance (2026/27):** GBP 17,000 single; GBP 34,000 for a jointly assessed couple. It is reduced by GBP 1 for every GBP 2 of income over GBP 100,000 (GBP 200,000 joint) _(ITA 1970 s.35 as varied by Tynwald resolution under s.119, 17 February 2026, Hansard item 6; PN 227/26 para 1; rates and allowances page)_
- **Headline personal income tax rates (2026/27):** Residents: 10% on the first GBP 6,500 of taxable income (GBP 13,000 jointly assessed) and 21% on the balance. Non-residents: 21% on all income. Unchanged from 2025/26 _(PN 227/26 para 1)_
- **Annual personal tax cap (election):** GBP 220,000 per individual; GBP 440,000 per jointly assessed couple, for elections of five or ten years _(ITA 1970 ss.2ZA, 2ZB(1A); [im-income-tax](im-income-tax.md))_
- **Headline corporate income tax rates (2026/27):** 0% standard rate. 10% on banking business and on Manx retail business with taxable income over GBP 500,000. 20% on Manx land and property income and on petroleum extraction. Large groups (EUR 750 million revenue) also pay Domestic Top-up Tax to reach a 15% effective rate, for fiscal years from 1 January 2025 _(PN 227/26 para 1; Pillar 2 page; [im-corporate-income-tax](im-corporate-income-tax.md))_
- **National Insurance (2026/27):** Employees 11% between GBP 176 and GBP 1,082 a week and 1% above; employers 12.8% above GBP 176 a week with no upper limit; self-employed Class 2 GBP 6.75 a week and Class 4 8% between GBP 9,152 and GBP 56,264 and 1% above _(PN 227/26 para 4; [im-payroll-social](im-payroll-social.md))_
- **Does VAT exist?** Yes. VAT under the Value Added Tax Act 1996 (an Act of Tynwald), in one VAT area with the UK. Rates are 20%, 5% and 0%. The Island has its own 5% rates on hotel and holiday accommodation and on construction services on eligible buildings in the Island. Registration is required above GBP 90,000 of taxable supplies in 12 months _(VATA 1996 s.2(1), s.29A, Sch 1 Groups 8 and 14, Sch 2 para 1; [isle-of-man-vat](../isle-of-man/isle-of-man-vat.md))_
- **Capital gains tax and inheritance tax:** The Island has no capital gains tax and no inheritance tax _(Income Tax Division, Moving to the Island page)_
- **Personal income tax return deadline:** The Act requires delivery before 6 October after the tax year, so file by 5 October (5 October 2027 for 2026/27). The Division's pages give the date as 6 October _(ITA 1970 s.62(1); [im-income-tax](im-income-tax.md))_
- **Personal income tax payment:** 6 January after the tax year (6 January 2028 for 2026/27). Payment on account, where due, is 6 January within the tax year _([im-income-tax](im-income-tax.md); GN3)_
- **Company income tax return and payment deadline:** The day after 12 months from the end of the accounting period, for both the return and the tax. Returns are filed online _(ITA 1970 ss.A66(3), B66; GN58; [im-corporate-income-tax](im-corporate-income-tax.md))_
- **Employers:** ITIP and NI are paid monthly with form T35 by the 19th of the following month, and the annual return is due by 5 May _(Employers: Compliance and Penalties page; [im-payroll-social](im-payroll-social.md))_
- **Company registration:** Standard incorporation costs GBP 100 and the annual return GBP 380 for a standard company _(Companies Registry fees page; [im-company-formation](im-company-formation.md))_
- **UK treaty:** The 2018 UK-Isle of Man double taxation agreement has effect for Manx income tax from 6 April 2019 _([im-income-tax](im-income-tax.md); [im-related-party-uk-treaty](im-related-party-uk-treaty.md))_

## Sources

| Source | URL | Read on |
|---|---|---|
| Income Tax Act 1970 (AT 3 of 1970), consolidated text [62], ss.1, 2, 2ZA, 2ZB, 35, 62, 119, A66, B66 | https://legislation.gov.im/cms/images/LEGISLATION/PRINCIPAL/1970/1970-0003/1970-0003_62.pdf | 2026-10-30 |
| Tynwald Court Official Report (Hansard), 17 February 2026, item 6: Income Tax Act 1970, personal allowance, resolution under s.119 carried | https://tynwald.org.im/index.php/spfile?file=%2Fbusiness%2Fhansard%2F20202040%2Ft260217.pdf | 2026-10-30 |
| Practice Note PN 227/26, Budget 2026 income tax and National Insurance proposals (17 February 2026) | https://www.gov.im/media/1391759/pn-227-26-budget.pdf | 2026-10-30 |
| Income Tax Division, Rates and allowances | https://www.gov.im/categories/tax-vat-and-your-money/income-tax-and-national-insurance/individuals/residents/rates-and-allowances/ | 2026-10-30 |
| Income Tax Division, Moving to the Island: new residents | https://www.gov.im/categories/tax-vat-and-your-money/income-tax-and-national-insurance/individuals/residents/moving-to-the-island-new-residents/ | 2026-10-30 |
| Income Tax Division, Pillar 2 Global Minimum Tax | https://www.gov.im/categories/tax-vat-and-your-money/income-tax-and-national-insurance/pillar-2-global-minimum-tax/ | 2026-10-30 |
| Income Tax Division, Employers: Compliance and Penalties | https://www.gov.im/categories/tax-vat-and-your-money/income-tax-and-national-insurance/employers/compliance-and-penalties/ | 2026-10-30 |
| Guidance Note GN58, Company Income Tax Return (31 December 2024) | https://www.gov.im/media/1386923/gn58-company-income-tax-return-20241231_compressed.pdf | 2026-10-30 |
| Value Added Tax Act 1996 (AT 1 of 1996), consolidated text [61] | https://legislation.gov.im/cms/images/LEGISLATION/PRINCIPAL/1996/1996-0001/1996-0001_61.pdf | 2026-10-30 |
| Customs and Immigration, VAT | https://www.gov.im/categories/tax-vat-and-your-money/customs-and-excise/vat/ | 2026-10-30 |
| Customs and Immigration, Imports and Exports | https://www.gov.im/categories/tax-vat-and-your-money/customs-and-excise/imports-and-exports/ | 2026-10-30 |
| Companies Registry, Fees | https://www.gov.im/categories/business-and-industries/companies-registry/fees/ | 2026-10-30 |
| gov.im, Manx currency: coins and notes | https://www.gov.im/categories/tax-vat-and-your-money/manx-currency-coins-and-notes/ | 2026-10-30 |

Not yet confirmed: the Currency Act 1992 (cited in the old version for the Manx pound; not read, so the gov.im currency page is cited instead); the Island VAT return due date (see isle-of-man-vat).

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-10-30. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `im-tax-overview` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/im-tax-overview. If neither is available, confirm every figure against the official source pages cited above before relying on it.